Drinks manufacturer A.G. Barr PLC completed a £35 million ($45.4 million) pension buy-in with Canada Life for its pension plan, a company spokeswoman said.
The agreement covers the 100 retirees in its defined benefit plan, she added.
Consultant Hymans Robertson and law firm Shepherd and Wedderburn advised the trustee on the buy-in.
The transaction was primarily funded with gilts, as the trustees took advantage of good pricing to optimize their low risk assets, Hymans Robertson said in a news release. The deal represents more than 50% of the Cumbernauld, Scotland-based plan’s total retiree liability and is focused on recently retired participants.
The £107.3 million pension fund had a £25 million deficit as of July 30.
James Mullins, partner and head of risk transfer solutions at Hymans Robertson, said in the release that an increasing numbers of trustees and scheme sponsors are working together to minimize risk and maximize pension security for members.
He added that the deal is illustrative of the excellent value that the market for retiree buy-ins represents at the moment, and he expects to see an increasing number of schemes go down this route.
